Moody's assigns B2 to Inetum

Moody's Investors Service said it assigned B2 ratings to Granite France Bidco SAS (Inetum) and its planned €200 million backed senior secured revolving credit facility, €433 million backed senior secured term loan A and €350 million backed senior secured term loan B.

"Inetum benefits from an attractive business profile, characterized by its established position as a multi-local information technology (IT) and consulting services company with a presence across the IT services value chain," said Fabrizio Marchesi, a Moody’s vice president-senior analyst and lead analyst for the company, in a press release.

"However, its capital structure is aggressive, with high opening leverage and low expected free cash flow (FCF) generation. The rating is weakly positioned in its rating category, which means the company will need to continue its track record of growth to improve its financial metrics going forward," added Marchesi.

The agency said it estimates Inetum’s Moody’s-adjusted leverage will drop towards 6x in December from 6.3x at June 30.

Term loan proceeds will be used, along with other senior secured debt, to finance a portion of the acquisition of Inetum SA by Granite France.

The outlook is stable.

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